STEM 12-11

BUSINESS PLAN

GREEN
HAY-VEN
PAPER PROUCTS

BUSINESS
OWNERS

MYKIELL PAGAYONAN
Chief Executive Officer

JAN ANGELEE ANSINO

Chief Marketing Officer

PATRICK ANDREW CORTEZ

Chief Information Officer

SHANA MARIE DELA TORRE

Human Resource Manager

JOHN PAUL DORONILLA

Chief Operating Officer

PAOLYNN NICOLE EVANGELISTA

Chief Finance Officer

H’ LORENZO QUIMBA
Product Manager

BIODEGRADABLE, ECO-FRIENDLY PAPER

MADE FROM RICE STRAW

09155980982 Blk. 21 Lt. 6 Brgy. PHHC Blk.22 Lily St. NHA Mandurriao Iloilo City mykiell5153@gmail.com
 INTRODUCTION
Page
i. Proposed Name of the Business 2
ii. Address of the Business 2
STNETNOC FO ELBAT
iii. Name of the Owners 3
iv. Description of the Business 4
v. Location of the Business 4
vi. Funding Requirement and Source of Funds 5

EXECUTIVE SUMMARY
Page
i. Vision, Mission, Goals, and Objectives 8
ii. Company's Proposed Stages of Growth 10
and Priorities
iii. Business Model 13
iv. Business and Product Position 13
v. Wealth Improvement Approaches 14
vi. Parties Supporting the Business 16

ENVIRONMENTAL ANALYSIS
Page
i. Trend in History 19
ii. Customer Environment 20
iii. External Environment 20
iv. Internal Environment 26

BUSINESS DESCRIPTION
Page
i. Product Description 29
ii. Equipment and Materials 29
iii. Size of Business 30
iv. Personnel Requirement 30
 ORGANIZATIONAL PLAN
Page
i. Form of Business Organization 32
STNETNOC FO ELBAT
ii. Liability of the Owners 32
iii. Organizational Structure 33
iv. Roles and Responsibilities 34
v. Salary Requirements 35

PRODUCTION PLAN
Page
i. Production and Schedule 37
ii. Production Process 38
iii. Processing Plant and Equipments 39
iv. Source of Materials 41
v. Production Cost 41

OPERATION PLAN
Page
i. Evaluation of Supplier 43
ii. Purchase Procedures 43
iii. Storage and Inventory Control System 45
iv. Sales Procedures 45

MARKETING PLAN
Page
i. Product 47
ii. Place 47
iii. Price 47
iv. Promotion 48
v. Target Population 48
vi. Packaging 49
vii. Positioning 49
 FINANCIAL PLAN
Page
i. Major Assumptions 51
ii. Financial Statement 51
STNETNOC FO ELBAT
iii. Income Statement 52
iv. Statement of Owners' Equity 52
v. Balance Sheet 53

REFERENCES Page
54

APPENDIX Page
57
 i.
ii.
iii.

INTRODUCTION
 INTRODUCTION

PROPOSED NAME OF THE BUSINESS

Green Hay-ven: Paper Products

With the ever increasing amount of pollution

around the world, our business aims to be a part
of the effort that protects and creates a haven
for the natural green environment. We plan to
achieve this by creating alternatives of non-
biodegradable potential wastes with eco-friendly
paper products. These products will be made
from hay, specifically that of rice straw.

ADDRESS OF THE BUSINESS

Blk. 21 Lt. 6 Brgy. PHHC Blk.22 Lily St. NHA Mandurriao,

Iloilo City

You can contact us through this number:

09155980982 - Globe

You can also reach us via email:

mykiell5153@gmail.com

2
 INTRODUCTION

BUSINESS OWNERS

MYKIELL PAGAYONAN JAN ANGELEE ANSINO

Chief Executive Officer Chief Marketing Officer

PATRICK ANDREW CORTEZ SHANA MARIE DELA TORRE

Chief Information Officer Human Resource Manager

JOHN PAUL DORONILLA PAOLYNN NICOLE EVANGELISTA

Chief Operating Officer Chief Finance Officer

H’ LORENZO QUIMBA
Product Manager

Green Hay-ven is made by individuals with

the same goal: to have a clean and safe
environment. We are aspiring Grade 12 students
who possess an interest in business, value the
needs of our consumers, and at the same time
aim to save our environment. We all got along by
sharing the same idea; to produce a product that
will benefit our consumers affordably, while also
reducing waste and pollution.

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 INTRODUCTION

DESCRIPTION
OF BUSINESS
The world that we currently live in generates 2.01 billion tonnes
of waste every year (World Bank, n.d.). Plastics and ungreen methods
of manufacturing products have been an issue. We want to be part of
the effort in reducing waste. Green Hay-ven helps achieve exactly this,
by producing innovative eco-friendly products with firstly; rice straws
and later utilizing other reusable wastes.
Rice straws are one of the most common by-products of agriculture.
Almost all of them are discarded and burnt after harvest, harming both
the surrounding people and the environment. Every year 7.08 million
tonnes of these rice straws are set on fire in the Philippines alone, this is
practiced by 76% of rice cultivating farms all over the country. Php 18.41
Billion would have been generated if they were properly reused in other
industries (Mendoza, 2015). Green Hay-ven transforms these so-called
“waste”, into paper which would be biodegradable and eco-friendly. We
plan to also create other products with this paper, like paper pots, paper
bags, disposable paper tableware, paper food packaging and the like. We
look forward to creating more alternative solutions to replace non-
biodegradable products.

LOCATION
OF BUSINESS
The location of our business is at Blk 56 Lot 11 Brgy. Bolilao, Mandurriao,
Iloilo City.

One of the business owners has generously offered their private

household to serve as the location of the business, removing the need to pay
rent. This would greatly reduce starting and operational cost, especially when
considering that the business will only begin its operations. With its location in
the city, it is accessible to our initial target customers. Its accessibility also
extends to deliveries for those who prefer to order our products online.

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 INTRODUCTION

FUNDING REQUIREMENT AND SOURCE

Equipment Php 3,042
Cauldron Php 482
Ladle Php 140
Mortar and pestle Php 120
Mold and Deckle Php 300
Blender Php 1500
Tub Php 500

Materials Php 2,800

Starch Php 200
Charcoal Php 1,700
Rice Straw (transportation) Php 500
Glue Php 400

Business Permits Php 2,500

Total Php 8,342

SOURCE OF FUNDING

Above is the estimated summary of the starting capital of the business and
its operational costs in its first several days of launch. When compared to other
starting entrepreneurial ventures, the costs of the business is relatively low. One
of the reasons why, is because the cost of rent/space of the business, which is
usually considered one the highest expenses of a starting business, is taken out of
the equation due to the sponsorship of one of the business owners. Due to the
low starting cost of the business, the source of funding will be covered by the
seven business owners split evenly among them.

5
 INTRODUCTION

For the starting weeks of the business, the company will not
loan from banks. This is due to the following reasons:

Business owners can cover up the starting costs.

Loans are used to give a company a boost, providing equipment

and the necessary tools in order for them to rapidly grow. Since the
company has only begun its operation, we cannot clearly define the
exact number of our customers at the start of operation. Borrowed
money might be over estimated and excess or unnecessary utilities
will be put to waste for the time being.

Loans have interests, excess money will be underutilized.

There is a high level of risk if the company built on loans, fails or did
not meet its projected expectations.

The company will only start loaning if either:

Demand rises high enough that our current equipment and utilities
could not produce enough to meet said demands, or

If the business gets enough customers that the business owners are
confident enough to risk expending a large sum of money to rapidly
grow.

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 i.
ii.
iii.

EXECUTIVE
SUMMARY
 EXECUTIVE SUMMARY

VISION STATEMENT
Reducing pollution by manufacturing
reusable wastes into innovative biodegradable
products.

MISSION STATEMENT

To create, innovate, and spread the use

of eco-friendly alternative solutions to replace
harmful non-biodegradable products.

GOALS AND OBJECTIVES

The company’s goals and objectives in order of
priority are:
To pioneer the creation and use of paper
products made from recycled rice straw in the
local area.
To develop eco-friendly biodegradable products
through our rice straw paper.
To advocate the use of eco-friendly products.
To innovate alternative solutions for non-
biodegraded products by utilizing other reusable
wastes.
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 EXECUTIVE SUMMARY

The first objective that the company must

complete is establishing a strong local presence,
that would gradually expand. This would ensure
that we have a stable and solid customer base that
grows along with us. For us to have a proper
identity at the start and to be remembered
properly, we will begin producing only a small
range of products specifically those that can be
made from rice straw paper. As we continue to
grow, we can begin to introduce more products
while still keeping close to the “rice straw paper”
identity.

Once our presence is strong enough and we

are known well, we can begin to advertise our
company that actively supports the effort of
reducing waste. This would not only help boost
sales but will also make our loyal customers feel
better about themselves buying our products.
With our identity expanded and shifted into a
force that helps the environment, we can then
gradually introduce innovative products made
from other reusable wastes, further strengthening
our new identity. This would play out according to
our proposed stages of growth and priorities
below.

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 EXECUTIVE SUMMARY

COMPANY'S PROPOSED
STAGES OF GROWTH
AND PRIORITIES

The company plans to grow and set its

priorities according to the following three stages. Each
stage will be based on revenue and demand.

Stage 1: (Establishment and start)

Priorities:
Build a solid customer base
Improve starting products

Revenue: < Php 50,000/month

In this stage Green Hay-ven seeks to establish its

first customers, putting focus on retention of customers
first, then increase of numbers next. This is achieved by
targeting friends and family as our initial buyers, while
slowly advertising through word of mouth and online
platforms (Facebook and GoogleMaps). Our first products
will be the rice straw paper, paper bags and plant pots.
These three products will be improved until it has
achieved the highest possible quality that we can
accomplish with our current equipment and tools.

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 EXECUTIVE SUMMARY

Stage 2: (Expansion)

Priorities:
Advertise and increase customer count
Develop more products made from rice straw.

Revenue: Php 50,000 - Php 100,000/month

In the second stage of the company’s growth,

advertisement will be improved with better promotional
materials and channels. Here we will expand our social
media presence, extending to Twitter, Youtube, and
Instagram while also creating our own website, utilizing
the feedback and reviews of our base customers as
testimonies. We will also continue to personally reach
out potential stores, restaurants, schools, bookstores
and companies that would like to partner with us or use
our products for their day to day operations. Our
products will also be properly made international
through third parties like Shopee, Lazada, Amazon and
other online shopping sites.

More eco-friendly biodegradable products from

rice straw will be developed like, paper food packaging,
disposable tableware and the like. It is also in this stage
that our new products will be improved, while
introducing better equipment and facilities for our
employees.

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 EXECUTIVE SUMMARY

Stage 3: (Innovation)

Priorities:
Innovate and create other biodegradable
alternatives, utilizing other reusable wastes.
Advocate and support the effort of reducing waste.

Revenue: > Php 100,000/month

This is the stage in which we have envisioned

the company to be. By this stage, revenue is high
enough to support a well-equipped research and
development department that would be able to
innovate new and marketable eco-friendly products,
like bio-plastics from various materials or compostable
trash bags. Advertisements will also be improved while
shifting its focus primarily on the cause that our
products are helping. Our new products and improved
advertisement will help us reach a wider audience and
attain more customers. Here, we will also strengthen
our online and international presence.

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 EXECUTIVE SUMMARY

BUSINESS MODEL

Key Partners Key Activities Value Customer Customer

Local food Material Propositions Relationship Segments
stores and Processing To reduce Bulk-buy Mass market
restaurants Production pollution Long-term Stores and
Local rice Product An alternative Transactional restaurants
farmers innovation to non- that want to
Delivery Market biodegradable use
service research products alternative
companies Advocates a
eco-friendly
Retail greener
products in
environment
Partners Key Resources Channels their business
Gift shop Gift shops
Quality Direct Buy
stores that sells or
advertisement Social Media
and promotion Email retails
Ability to Phone aesthetic yet
innovate, eco-friendly
improve and products
adapt

Cost Structure Revenue Streams

Employees' salaries Product sales
Equipment Sponsorships
Raw Materials
Electricity
Advertising

BUSINESS AND PRODUCT POSITION

Non-biodegradable materials do not easily decompose, thus can

harm the environment through pollution. This can be detrimental not only
to human beings but also to the surrounding ecosystems. Green Hay-ven
aims to reduce pollution caused by these materials by offering eco-friendly
alternative solutions made primarily from rice straw. We direct our focus on
solving this ever increasing issue by fulfilling our customers' want and need
of living greener.
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 EXECUTIVE SUMMARY

WEALTH IMPROVEMENT
APPROACHES

In order to increase profits and revenue streams

the following must be done:

Maintain a competitive advantage

One of the competitive advantages that the
company has is the few numbers of business ventures
that primarily take on the problem of offering
alternative solutions to non-biodegradable products.
The threats of competition that the business faces are
the low costs of the non-biodegradable market. This
obstacle can be overcome by innovation, efficient
production and good advertising.

Position of the business in the market

The company primarily aims to reduce pollution.
In order to achieve this, we create, innovate, and
spread eco-friendly alternative solutions of non-
biodegraded products. Our main target will be the
market of biodegradable alternatives. This is a difficult
market to enter, so our secondary aim in order to start
up the business, is to position ourselves in the market
that sells paper as aesthetic products, while serving
the paper bag and plant pot industry.

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 EXECUTIVE SUMMARY

Improve the market share

In order to increase the company’s market share,
we intend to innovate and create new products as well
as expand our customer base. Through innovation, we
can offer more products to our buyers. Establishing our
customer base begins with stores and restaurants of
known friends, families and neighbors of the business
owners, offering products that are of good use to their
customers. Expansion happens through our inquiry of
other businesses that might take interest in what we
offer, backed up by the testimonies and reviews of our
initial customers. This will continue through the use of
social media and good advertising.

Maximize utilization of resources

The majority of materials that we will be using are
charcoal, water and rice straw. We found out through
the local farmers that the price of rice straw is
basically 0 and they are just willing to give them for
free. When our purchases of these materials come in
larger quantities, prices will be set but will still be at
low prices. The greatest cost that these rice straw
present is transportation. In order to reduce
transportation costs, we will ensure that our
processing and manufacturing locations are as close
as possible to our rice straw suppliers. As for the water
usage, it can be recycled with little to no
consequences. Charcoal will be bought in large
volumes to reduce cost.
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 EXECUTIVE SUMMARY

PARTIES SUPPORTING
THE BUSINESS

Consumers
These are the individuals, stores and organizations
that have found use for our products and are willing to
make a purchase. They are one of the primary pillars
that would hold this business afloat, as they are the
company’s source of income and revenue. Through
their continued return; exposure and advertisement of
the company will increase. Green Hay-ven aims to
ensure the best customer satisfaction by prioritizing
their suggestions and feedback, adjusting and
improving our products and services accordingly.

Creditors
These are individuals that have invested and
loaned the company money in order for the business
to have the resources to grow. They are people who
have faith in the organization and envision our success
in the future. It is vital for the company to continually
meet and exceed their expectations. The owners,
especially the CEO must be committed in the business
venture so as to not lose the support of the creditors.

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 EXECUTIVE SUMMARY

Suppliers
Through the suppliers the business will be able to
obtain the needed materials for processing and
production. It must be ensured that materials supplied
are of high quality and good value. The most optimal
relationship between the suppliers and the company
will be to become a regular and well trusted provider of
our needs. This guarantees a steady and ready flow of
raw materials, eliminating the worry of lacking
resources.

Employees and Staff

These are the particular group of people who
work for an organization or business. They are the
ones responsible for selling and manufacturing the
products. It is important to trust them as they will be
more dedicated in handling customers and will be
much more enthusiastic in serving the business.
Green Hay-ven seeks to have a good relationship with
the employees as this is vital to one’s business, as a
sense of belongingness is a big factor that could
improve their productivity and increase their job
performance.

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 i.
ii.
iii.

ENVIRONMENTAL
ANALYSIS
 ENVIRONEMNTAL ANALYSIS

TREND IN THE INDUSTRY

Over the years, environmental health around the world
has been decreasing. From solid waste, air pollution and
increase of greenhouse gases to ecological destruction, the
issue has been a growing concern not only in developed
countries but also among third world nations. Plastics and
other non-biodegradable products have been slowly replaced
by alternative eco-friendly solutions. Efforts are being made to
save the environment, now that we are nearing the “point of
no return” (PNR) or the threshold in which the damage to the
natural environment has become so severe it is irreversible.

In 2016, 2.01 billion tonnes of solid waste were

produced, this amounted to an average footprint of .74
kilograms of waste per person every day. Because of rapid
urbanization and population growth there is an expected 70%
increase by 2050, reaching 3.40 billion tonnes of waste
annually.

Intense air pollution is also a troubling issue, causing

the deaths of around 4.9 million people annually worldwide.
There has been an increase of carbon monoxide, sulphur
dioxide and particulate matter (PM) all of which are of great
issue, with particulate matter being the primary concern.
There has been a reported 8% annual increase of PM around
the world.

The world has taken action to address these concerns.

One of which is the rise of renewable energy having an
increase of 15% compound annual average growth.
Businesses are being fined over excessive carbon emissions.
More eco-friendly products are being produced by companies
all over the world. There has been a visible shift to
biodegradable products.

19
 ENVIRONEMNTAL ANALYSIS

CUSTOMER ENVIRONMENT
Our business, Green Hay-ven Paper Products, is
accessible to all and is highly affordable for customers.
Our products are mainly made from biodegradable
materials which are easy to recycle and contribute to the
reduction of the amount of waste produced. Our target
consumers will most likely be stores and organizations
that are concerned regarding the safety of our
environment from pollution. We chose them as our
target consumers because there is an increase in
demand for alternative solutions for non-biodegradable
products because more and more people are choosing
eco-friendly alternatives instead of those made of plastic.
Furthermore, Green Hay-ven products are non-toxic,
recyclable, and biodegradable, which are safe not only
for the consumers but for the environment as well.

EXTERNAL ENVIRONMENT
Market Forcast
Plastic plays an important role in everyday life
as it is versatile and affordable, but it is harmful in
nature; made from 90% fossil fuel causing serious
environmental problems. With its lack of degradability,
there has been a decrease of its use in the past years.
They are currently being replaced by paper bags with a
4.1% compound annual growth rate. The global paper
bag market is at 5 billion USD as of 2020 and is
expected to reach 6.6 billion USD by 2026.
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 ENVIRONEMNTAL ANALYSIS

Non-biodegrdable products are also being replaced

with eco-friendly alternative solutions. The green
technology and sustainability market size was valued at
10.32 billion USD in 2020, with its compound annual
growth rate of 21.9% from 2021 to 2030, it is expected to
reach 74.64 billion USD by 2030.

The market for biodegradable packaging is at 81.7

billion USD as of 2020. This is currently expected to reach
118.85 billion USD by 2026, having a compound annual
growth rate (CAGR) of 6.35%. The Asian Pacific market is
currently the fastest growing in this sector.

Competitor Analysis
Every business has its own competitors. It is
important to know the strengths between Green Hay-ven
and other possible competitors to ensure the growth and
survival of the company. These are the list of some of the
competitors of Green Hay-ven:

Competitor: Shanghai SUNKEA

Shanghai SUNKEA (51cup) is a leading disposable
food and beverage packaging supplier in China. SUNKEA
has been committed to designing, developing, producing
and selling high-quality disposable food packaging
products. Sunkea provides an extensive range of food
packaging solutions to customers around the globe. They
have been focusing on the food packaging industry since
2005. Eco-friendly and food-grade standards are their first
priority.
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 ENVIRONEMNTAL ANALYSIS

Strengths: Shanghai SUNKEA

The versatile product line is capable of
manufacturing innovative food packaging products
personalized for every customer. Apart from new
product development and customer logo design, in-
house experienced and professional design team can
provide superior services

Weakness: Shanghai SUNKEA

Despite its relatively large scale, this company
lacks the local presence here in Iloilo.

Competitor: RiceStraws by NLYTECH

RiceStraws by NLYTECH Biotech Sdn Bhd is a newly
set-up company that focuses on the biodegradable and
petroleum plastic replacement solution. Their tagline is
“eco-friendly rice straws that last longer, cost cheaper and
leave no waste for future generations”.

Strengths: RiceStraws by NLYTECH

Their products are high quality, eco-friendly and
edible, as well as affordable. The products decompose
completely in 90 days. Their products are recyclable which
is suitable as animal feed or fertilizer.

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 ENVIRONEMNTAL ANALYSIS

Weaknesses: RiceStraws by NLYTECH

This company lacks the flexibility and
innovation only producing straws from rice. They also
lack the local presence here in Iloilo.

Market Position
Green Hay-Ven aims to protect and create a
naturally safe and clean environment. Our goal is to
provide high-quality and eco-friendly products that can
help our planet heal from environmental issues. The
products we produce are distinctively different from
other eco-friendly products as we continue to innovate.

We position our marketing by providing high-

quality eco-friendly papers that are specifically made
from rice straws. At the same time, consumers can
benefit from it because it is sold affordably. Innovations
would be made to create new ways in providing eco-
friendly products as alternatives.

The current market that we will serve is in the local

area of iloilo and later expanding throughout the
Philippines and later internationally. This ensures that we
have a strong presence as we expand and form a
growing population of regular customers.

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 ENVIRONEMNTAL ANALYSIS

Perceptual Map Innovative

Weak local Strong Local

Presence Presence

Offers only one

Product

RiceStraws by NLYTECH Green Hay-ven

Shanghai SUNKEA

To have a sharper competitive advantage, Green hay-ven aims to do

two things: first is to create a strong presence in the local area which
would gradually expand as we grow, and secondly to continually innovate
and create more and better products over time. Both of our competitors
may have a global scope but they are not known well in the locality.
RiceStraws by NLYTECH severely lacks innovation only offering one type of
product. Our strongest competitor in innovation is Shanghai SUNKEA,
which we plan to beat with presence, then later with innovation as we
grow.
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 ENVIRONEMNTAL ANALYSIS

Marketing Strategy
Reaching out to our customers will be difficult
for a starting business. Without a marketing strategy
we cannot maintain the business to continue and to
reach its goal. Nowadays, people worldwide use
technology as a tool for communicating with each
other. In our business, we utilize the internet where
we can easily access consumers who are interested in
buying our products. We start by approaching those
who are close to us, such as friends and family, and
telling them about our products. We also offer
discounts to increase sales and attract new and
regular customers.

Marketing our products will be of great help and

would promote the business. With the right strategy
and optimization, it will engrave our identity among
our audience.

Our goal is to reach out to stores and businesses

that want to use alternative green products. Our plan to
achieve this is as follows:

1) We will reach out to our friends and family who are

interested in our products, especially those with stores
and restaurants that would like to utilize our products in
their day to day operations.

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 ENVIRONEMNTAL ANALYSIS

2) With the testimonies of our friends and family, we

can use their reviews as an advertising tool in social
media as well as significantly improve our promotion.
Large scale campaigning begins at this stage. Our goal
here is to now create a solid number of regular
customers and improve our product to maintain their
wants and needs to buy from us.

3) Once our product improves by a substantial amount

and our revenue stream is significantly larger, we can
now start to reach out to other provinces especially
large malls if they want to use our products as
alternatives to what they previously use such as food
packaging, paper bags and plant pots.

4) Further improvement of advertisement with

enhanced promotional materials and better
testimonies from our larger partners are carried out.

INTERNAL ENVIRONMENT
The business owners, still young, truly understand the
importance of helping the environment, as they would be
living in this world for the next several decades. They have
made it their goal to reduce pollution by allowing other
people to switch to greener alternatives. This need and
collective goal would allow them to work in the business more
efficiently as they have a proper objective to look forward to.

26
 ENVIRONEMNTAL ANALYSIS

The business owners are no strangers to one

another, most have worked and known each other for
some time. They will serve both as administrators and
employees of the company for the first few years. They
also understand that the payment of their salaries would
be dependent on how well the company performs and its
revenue. Their performance will also dictate their share
of the business allowing less room for complacency.

27
 i.
ii.
iii.

BUSINESS
DESCRIPTION
 BUSINESS DESCRIPTION

PRODUCT DESCRIPTION
Green Hay-ven will produce biodegradable eco-
friendly paper products that will be primarily made from
rice straw. The paper will be further manufactured into
paper bags, food packaging and plant pots. This is in line
with the goal of helping reduce pollution by minimizing
the use of non-biodegradable products. The rice straw is
also considered as waste and is usually burned after
harvest. In order to avoid this, we have specifically made
most of our products from this material.

EQUIPMENTS AND MATERIALS

Equipment
Scissors - to cut the rice straw into smaller pieces
Cauldron - to boil the rice straw in order to soften it
Ladle - To stir the rice straw in the cauldron during boiling
Mortar and pestle - to grind the rice straw
Blender - to turn the grinded rice straw into a puree
Mold and deckle - To form the paper
Tub - To suspend the puree in the water for paper
formation

Materials
Rice Straw
Charcoal
Cornstarch/Flour
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 BUSINESS DESCRIPTION

SIZE OF THE BUSINESS

This is a small business that is composed of
seven employees including the CEO. These employees
would work together in manufacturing, acceptance of
orders, delivery, advertisement and administration.

Due to the low starting cost and the

sponsorship of the business location, the starting
capital of this business will be between Php 5,000 and
Php 10,000.

The company does plan on soon expanding

once revenues increase and would continue to find
partners we could work with.

PERSONNEL REQUIREMENT
The skills of our employees and the
cooperation of the co-owners are required in the
business. We need cooperation through our work in
order for our organization to be productive and
creative on what we are doing. Specifically, the skills
and qualities that the company looks forward to are
the following:

Respect Reliability
Industriousness Self-awareness
Problem solving skills Communication skills
Learning skills Leadership
Knowledge in the field Determination

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 i.
ii.
iii.

ORGANIZATIONAL
PLAN
 ORGANIZATIONAL PLAN

FORM OF BUSINESS
ORGANIZATION
The business “Green Hay-Ven'' is in the form of a
partnership. This form of business organization is a
combination of knowledge and resources that are
brought together by the owners. This type of ownership
is often useful in the early stages of the business where
multiple people are involved, splitting the initial costs
and manpower. Partnerships are very common with
friends and families going into business together.

LIABILITY OF THE OWNERS

In a partnership form of business organization,
all owners of the business have a liability that describes
their legal responsibility in the business organization.
Business owners who do not protect their liability may
encounter different categories of risk, especially if they
do not cooperate and meet their obligations. In our
business, each owner has an equal share in starting the
business and an equal amount of work must be
accomplished for each owner to meet the operating
expenses. If a co-owner lacks the amount of effort and
does not meet the expectations of an equal partnership,
they will have a lower share than the others.

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 ORGANIZATIONAL PLAN

ORGANIZATIONAL
STRUCTURE

MYKIELL DEOVENN
PAGAYONAN
Chief Executive Officer

JAN ANGELEE PAOLYNN NICOLE

ANSINO EVANGELISTA
Chief Marketing Officer Chief Finance Officer

SHANA MARIE JOHN PAUL

DELA TORRE DORONILLA
Human Resource Manager Chief Operating Officer

PATRICK ANDREW H' LORENZO

CORTEZ QUIMBA
Chief Information Officer Product Manager

33
 ORGANIZATIONAL PLAN

ROLES AND
RESPONSIBILITIES
Each of us is designated to a particular position to
maintain and manage our business smoothly:

The Chief Executive Officer (CEO) is responsible for

creating and completing business strategies,
introducing policies, and making sure the
organization reaches its goal.

The Chief Marketing Officer (CMO) directs marketing

campaigns, plans marketing budgets, and manages
the entire marketing department of the company.

The Chief Finance Officer (CFO) is responsible for the

cash flow and the financial success of the business.

The Human Resource Manager (HRM) is responsible

for recruiting, interviewing, and hiring new staff as
well as serving as the link between the company's
employees and management.

The Chief Information Officer (CIO), will be

responsible for the dissemination, implementation,
and usability of information from management to
the employees.

34
 ORGANIZATIONAL PLAN

The Chief Operating Officer (COO) ensures processes

run efficiently and often oversees various
departments to ensure employees are completing
their work properly on time.

The Product Manager (PM) analyzes product markets

and streamlines processes related to product
development. He will be responsible in identifying
the consumer's needs as well as monitor and
maintain the quality of the products.

SALARY REQUIREMENTS
The owners of the business are also the
employees operating the different sectors of the
company. Everyone at the start of the business will have
equal shares. Their salaries will be determined by the
profit of the company split between each share. If a
business owner does not perform their responsibility
properly, their share of the business will be deducted.
Forty percent of the revenues goes to this section.

If ever the company chooses to hire an employee,

their salary will also be based on the same method as
that of the business owners; shares. Their shares will
depend as dictated by the business owners and their
performance.

35
 i.
ii.
iii.

PRODUCTION
PLAN
 PRODUCTION PLAN

PRODUCTION AND
SCHEDULE
The production schedule of Green Hay-ven will
be made in accordance with the demand of the
consumers. The production will only occur whenever our
supply is low. We will process the ingredients of the
product a week before our supply is predicted to need
resupplying. Each employee will work for only 9 hours
daily for five days a week.

Employee and
Sun Mon Tue Wed Thu Fri Sat
Assignment

Jan Angelee
Ansino 9 hrs 9 hrs 9 hrs 9 hrs 9 hrs

Patrick Andrew
Cortez 9 hrs 9 hrs 9 hrs 9 hrs 9 hrs

Shana Marie
Dela Torre 9 hrs 9 hrs 9 hrs 9 hrs 9 hrs

John Paul
Doronilla 9 hrs 9 hrs 9 hrs 9 hrs 9 hrs

Paolynn Nicole
Evangelista 9 hrs 9 hrs 9 hrs 9 hrs 9 hrs

Mykiell Deovenn
Pagayonan 9 hrs 9 hrs 9 hrs 9 hrs 9 hrs

H' Lorenzo
Quimba 9 hrs 9 hrs 9 hrs 9 hrs 9 hrs

37
 PRODUCTION PLAN

PRODUCTION PROCESS
The main constituents of paper are cellulose and
hemicellulose. You can find these components in most
plant fibers. Rice straws contain cellulose, hemicellulose
and lignin. In order for us to create good quality paper,
lignin must be removed. In order to do so, the rice straw
must be turned into a puree before paper formation.
This includes the processes of boiling, grinding and
blending.

In order to form our products from rice straw the

following procedures must be done:

Supplies and materials are first acquired from our

sources.

The rice straw is cut into lengths of 3 to 4 inches.

The cut rice straw is boiled for 4 hours.

The boiled rice straw is cut even further then grinded

with a mortar and pestle.

The rice straw is then blended preferably for 5 to 7

minutes until it becomes a puree. Cornstarch can be
added to increase quality (optional).

38
 PRODUCTION PLAN

To make paper, the rice straw is mixed in water in a

tub. A thin sheet would be extracted with a mold
and deckle, which would be dried.

To make paper bags and plant pots, the rice straw

paper is folded and glued.

PROCESSING PLANT AND

EQUIPMENT
The processing plant is located in Antique with
our CEO and Iloilo with our COO. The equipment that is
needed to create the paper to make molded paper pots,
disposable paper tableware, paper food packaging, and
paper bags are as follows: Cauldron, Spatula, Mortar and
Pestle, Mold and Deckle, and Blender.

39
 PRODUCTION PLAN

Processing Plant Layout

Processing
Plant in Iloilo

Processing
Plant in
Antique

Legend:

Drying area Boiling Product creation

Storage area Sheet forming Grinding and blending

40
 PRODUCTION PLAN

SOURCE OF MATERIALS
The source of the rice straws, which is our main
ingredient, will be from the local farmers of two business
owners, one is located in Pototan, Iloilo and the other is
located in Valderrama, Antique. The following equipment
and materials: cauldron, ladle, mortar and pestle, mold
and deckle, blender, glue, charcoal and cornstarch will
be purchased online or at local stores and will be
prepared in the business office. The ingredients of our
products will be placed in the storage room and will be
handled with extreme caution.

PRODUCTION COST
The cost of our production will be determined
based on the materials, and electricity utilized. The
labor will not be taken into account as the business
owners are the employees whose salaries will depend
on the revenue and their share. The materials that we
will use to create the product are glue, cornstarch,
charcoal, and rice straw. There is also a cost for
electricity since we use a blender. Our costs for the
materials is Php 1,400, and Php 100 for the electricity,
with a total cost of Php 1,500, a weekly cost at the low
end. This could extend up to Php 5,000 depending on
demand. At high efficiency we can approximately
produce Php 8,000 to Php 12,000 worth of products for
every Php 2,800 worth of materials.

41
 i.
ii.
iii.

OPERATION
PLAN
 OPERATION PLAN

EVALUATION OF SUPPLIER
Measuring and evaluating supplier performance is
paramount to a reduction in costs, increased process
efficiency, and business performance. They help prevent
product issues and post-payment defects and drive
improvements in the supply chain.

The primary material that needs to be evaluated is

the rice straw. The quality of the rice straws are first
assessed from the farmers. If a trusted and regularly
good supply is delivered, we will form a partnership with
them. This ensures that the materials we obtain are
from a reliable source. The determinant for good quality
rice straw is its freshness.

PURCHASE PROCEDURES
To buy the materials we need, we go to the
suppliers. Green Hay-ven materials can be found in local
farms, local stores and online markets. The quality of our
materials will be double-checked before purchase.
There will be a requisition form for formality and ease.

43
 OPERATION PLAN

Green Hay-ven Requisition Form

44
 OPERATION PLAN

STORAGE AND INVENTORY

CONTROL SYSTEM
Since our products are made of paper, it is easy
to stack. Our product will be stored in a dry place that
will not get wet. The area of our storage would be in
our production plants in Blk.21 Lot.6 Brgy. PHHC Blk.22
Lily St. NHA Mandurriao, Iloilo City and 184 Pagayonan
St., Takas, Valderrama, Antique. We will deliver it to our
business location when supply is low.

SALES PROCEDURES
They can purchase our products in our business
location. They can also order through online by
contacting or messaging us directly through email,
phone or our online platforms. After the orders have
been received, the products will be delivered to them
within a few days if in the city and 7 to 10 day if
outside.

45
 i.
ii.
iii.

MARKETING
PLAN
 MARKETING PLAN

PRODUCT
Plastic packaging being non-biodegradable can
bring pollution and are extremely harmful to the
environment. Green Hay-ven’s goal is to provide a
greener and safer environment and to reduce the
amount of non-biodegradable waste products.

Our products will be presented as alternative

solutions to non-biodegradable products.

PLACE OF OPERATION
Our business will be located at Blk 56 Lot 11 NHA
Brgy. Bolilao, Mandurriao, Iloilo City. We chose this place
because it is located in the city where it is very
accessible. Customers may also avail our products
through our contact addresses and online platforms.

PRICE
Green Hay-ven produces products which are highly
affordable to all customers. Our company makes sure
that our prices will be set at an affordable price that can
benefit the consumer and at the same time bring profit
to the company. They will range from Php 5 to Php 50.

47
 MARKETING PLAN

PROMOTION
Our goal is to attract customers in order for our
business to grow. We will be using social media
platforms such as Facebook, Instagram, Youtube,
Tiktok, Twitter and our online website to further
promote our company and products to the public. We
will also promote our product through close friends
and relatives to increase our sales and convince other
customers to buy our products. There will also be
promotions through radios and tarpaulins as well
which will be placed around the city. Apart from this,
our company will be making a mini advertisement to
further encourage and catch the attention of
consumers.

TARGET POPULATION
With rising concerns regarding the safety of our
environment, the demand for paper products is
increasing as more people are choosing eco-friendly
packaging instead of plastics. Our target customers are
individuals, big or small stores, schools, bookstores,
restaurants and who are still using non-biodegradable
packaging to be replaced with Green Hay-ven paper
products.

48
 MARKETING PLAN

PACKAGING
Packaging means wrapping products to make
them safe during transportation and storage, as well as
to increase presentability. Green Hay-Ven aims to
protect and create a naturally safe and clean
environment, therefore our goal is to minimize our
packaging as much as possible but at the same time
make sure that our products are safely packed and
secured. Products to be transported will be packaged
with our own biodegradable packaging made by Green
Hay-ven.

POSITIONING
Green Hay-ven is a unique company producing eco-
friendly products that can contribute in making a greener
environment. Its distinctiveness extends to the raw
materials that it uses, rice straws. Rice straws are
agricultural wastes that are of no use after harvest, thus are
burned and buried. In order to utilize them properly, the
company chooses to use them as the primary material for
our products.
Our company supports the effort of lesser pollution
be reusing rice straw wastes and by creating eco-friendly
alternatives that would replace harmful non-biodegradable
products.

49
 i.
ii.
iii.

FINANCIAL
PLAN
 FINANCIAL PLAN

MAJOR ASSUMPTIONS
The following assumptions will be the determining
factors of the future finances of the company:

We assume a growth in the market for greener

products.
We assume that more advanced technologies will
develop to help the world become more
environmentally friendly.
We assume that businesses and retailers seek to
follow government regulations in order to prevent
pollution.

FINANCIAL STATEMENTS
Below will be the income statement, statement of
owners' equity and the balance sheet of our business.
This is in the span of a year assuming that the company
will begin its operations of January 1, 2022. The
numbers are all approximations and set estimations of
the company, taking into consideration exponential
growth as we expand and how realistic they are in the
real world application.

51
 FINANCIAL PLAN

GREEN HAY-VEN
Income Statement
For the year ended December 31, 2022

Revenues Php 904,500

Product Sales Php 904,500

Total Expenses Php 668,300

Materials Php 254,000

Electricity Php 15,300
Equipment (maintenance and replacement) Php 36,500
Salary Php 360,000
Business Permits Php 2,500

Net income Php 236,200

GREEN HAY-VEN
Statement of Owners' Equity
For the year ended December 31, 2022

Capital, January 1, 2022 Php 10,000

Add: Investment by Owners Php 35,000
Net Income Php 236,200

Php 281,200
Less: Withdrawal by Owners Php 20,000

Capital, December 31, 2022 Php 261,200

52
 FINANCIAL PLAN

GREEN HAY-VEN
Balance Sheet
December 31, 2022

Liabilities
Assets Cash Php 21,000
Cash Php 119,700
Equipment Php 150,000 Owners' Equity
Material Inventory Php 12,500 Cash Php 261,200

Php 282,200 Php 282,200

53
 i.
ii.
iii.

REFERENCES
REFERENCES
https://www.mordorintelligence.com/industry-reports/gobal-
biodegradable-packaging-solutions-market-industry

https://datatopics.worldbank.org/what-a-
waste/trends_in_solid_waste_management.html

https://ourworldindata.org/plastic-
pollution#:~:text=The%20world%20now%20produces%20more
,our%20natural%20environment%20and%20oceans.

https://www.plasticsoupfoundation.org/en/plastic-
problem/plastic-environment/plastic-production-
decomposition/#:~:text=In%202017%2C%20the%20world%20p
roduced,landfills%20and%20in%20the%20environment.

https://www.researchgate.net/figure/Rice-straws-burned-in-
the-
Philippines_tbl1_300555447#:~:text=A%20common%20practic
e%20in%20the,billion%20had%20it%20been%20composted.

https://www.worldbank.org/en/topic/urbandevelopment/brief/
solid-waste-management

https://ourworldindata.org/air-pollution#air-pollution-is-one-
of-the-world-s-leading-risk-factors-for-death

https://www.filtermist.com/news/post/2019/06/04/air-
pollution-over-the-last-50-years

55
REFERENCES
https://www.wri.org/insights/growth-renewable-energy-sector-
explained

https://www.goecopure.com/consumer-demand-for-
ecopure.aspx

https://www.futuremarketinsights.com/reports/paper-bags-
market

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2873018/

https://www.sciencedirect.com/science/article/pii/S014829631
9306186

https://www.greenqueen.com.hk/blackrock-punishes-53-
companies-over-carbon-emissions-191-on-watchlist-climate-
action-100-pac/

https://www.imarcgroup.com/paper-bags-market

http://www.paperpulpingmachine.com/applications/wheat-
straw-pulp-making/rice-straw-pulp-making/

56
 i.
ii.
iii.

APPENDIX
APPENDIX

FUNDING REQUIREMENT

Equipment Php 3,042

Cauldron Php 482
Ladle Php 140
Mortar and pestle Php 120
Mold and Deckle Php 300
Blender Php 1500
Tub Php 500

Materials Php 2,800

Starch Php 200
Charcoal Php 1,700
Rice Straw (transportation) Php 500
Glue Php 400

Business Permits Php 2,500

Total Php 8,342

58
APPENDIX

BUSINESS MODEL

Key Partners Key Activities Value Customer Customer

Local food Material Propositions Relationship Segments
stores and Processing To reduce Bulk-buy Mass market
restaurants Production pollution Long-term Stores and
Local rice Product An alternative Transactional restaurants
farmers innovation to non- that want to
Delivery Market biodegradable use
service research products alternative
companies Advocates a
eco-friendly
Retail greener
products in
environment
Partners Key Resources Channels their business
Gift shop Gift shops
Quality Direct Buy
stores that sells or
advertisement Social Media
and promotion Email retails
Ability to Phone aesthetic yet
innovate, eco-friendly
improve and products
adapt

Cost Structure Revenue Streams

Employees' salaries Product sales
Equipment Sponsorships
Raw Materials
Electricity
Advertising

59
APPENDIX

PERCEPTUAL MAP

Innovative

Weak local Strong Local

Presence Presence

Offers only one

Product

RiceStraws by NLYTECH

Shanghai SUNKEA

Green Hay-ven

60
APPENDIX

ORGANIZATIONAL STRUCTURE

MYKIELL DEOVENN
PAGAYONAN
Chief Executive Officer

JAN ANGELEE PAOLYNN NICOLE

ANSINO EVANGELISTA
Chief Marketing Officer Chief Finance Officer

SHANA MARIE JOHN PAUL

DELA TORRE DORONILLA
Human Resource Manager Chief Operating Officer

PATRICK ANDREW H' LORENZO

CORTEZ QUIMBA
Chief Information Officer Product Manager

61
APPENDIX

PRODUCTION SCHEDULE

Employee and
Sun Mon Tue Wed Thu Fri Sat
Assignment

Jan Angelee
Ansino 9 hrs 9 hrs 9 hrs 9 hrs 9 hrs

Patrick Andrew
Cortez 9 hrs 9 hrs 9 hrs 9 hrs 9 hrs

Shana Marie
Dela Torre 9 hrs 9 hrs 9 hrs 9 hrs 9 hrs

John Paul
Doronilla 9 hrs 9 hrs 9 hrs 9 hrs 9 hrs

Paolynn Nicole
Evangelista 9 hrs 9 hrs 9 hrs 9 hrs 9 hrs

Mykiell Deovenn
Pagayonan 9 hrs 9 hrs 9 hrs 9 hrs 9 hrs

H' Lorenzo
Quimba 9 hrs 9 hrs 9 hrs 9 hrs 9 hrs

62
APPENDIX

PROCESSING PLANT: LAYOUT

Processing
Plant in Iloilo

Processing
Plant in
Antique

Legend:

Drying area Boiling Product creation

Storage area Sheet forming Grinding and blending

63
APPENDIX

GREEN HAY-VEN REQUISITION

FORM

64
APPENDIX

GREEN HAY-VEN
Income Statement
For the year ended December 31, 2022

Revenues Php 904,500

Product Sales Php 904,500

Total Expenses Php 668,300

Materials Php 254,000

Electricity Php 15,300
Equipment (maintenance and replacement) Php 36,500
Salary Php 360,000
Business Permits Php 2,500

Net income Php 236,200

65
APPENDIX

GREEN HAY-VEN
Statement of Owners' Equity
For the year ended December 31, 2022

Capital, January 1, 2022 Php 10,000

Add: Investment by Owners Php 35,000
Net Income Php 236,200

Php 281,200
Less: Withdrawal by Owners Php 20,000

Capital, December 31, 2022 Php 261,200

66
APPENDIX

GREEN HAY-VEN
Balance Sheet
December 31, 2022

Liabilities
Assets Cash Php 21,000
Cash Php 119,700
Equipment Php 150,000 Owners' Equity
Material Inventory Php 12,500 Cash Php 261,200

Php 282,200 Php 282,200

67
APPENDIX

NAME OF OWNERS

MYKIELL DEOVENN PAGAYONAN

CHIEF EXECUTIVE OFFICER
Introduction Elevator Pitch Speaker
Executive Summary Business Description
Product Demo Editor

JAN ANGELEE ANSINO

CHIEF MARKETING OFFICER

Introduction Marketing Plan

Environmental Analysis Financial Plan

PATRICK ANDREW CORTEZ

CHIEF INFORMATION OFFICER

Introduction Production Plan

Environmental Analysis Operation Plan

68
APPENDIX

SHANA MARIE DELA TORRE

HUMAN RESOURCE MANAGER

Introduction Marketing Plan

Environmental Analysis Financial Plan

JOHN PAUL DORONILLA

CHIEF OPERATING OFFICER

Introduction Production Plan

Organizational Plan Operation Plan

PAOLYNN NICOLE EVANGELISTA

CHIEF FINANCE OFFICER

Introduction Marketing Plan

Organizational Plan Financial Plan

H' LORENZO QUIMBA

PRODUCT MANAGER

Introduction Production Plan

Environmental Analysis Operation Plan

69